How Vacation Loan Could Be a Perfect Idea to Fund Your Holiday Trip?

After planning so much, you are now all set
to travel and experience the new corners of the world. No matter how exciting
or thrilled you or your family members might be, without proper funding, this
would be just a dream yet to be completed. Now, you probably wait for another
year. But what if the occasions are something special like anniversary or
honeymoon or any other event of your life?

Well, you will probably want to make it
happen at any cost. Now, if you don’t have adequate savings in your pocket,
then going for the option of a vacation loan might be a better option here.
It is another category of personal loans that people opt to finance their trip.
Let us discuss this funding source in a better way.

What exactly is a vacation loan?

A vacation or travel loan falls into the
category of unsecured personal loans where you don’t have to provide any
collateral to avail the loan. You will have to make the repayment in monthly
instalment over the fixed period. Now, the interest rate and amount that you
can get depend on your financial condition, such as:

Income

Employment history

Credit score

Debt to income ratio

Main features of vacation loan
that you must know

The best thing about availing this loan is
that it is collateral-free. So you don’t have to risk any of your valuable
assets such as a car, home and others. Also, the payment mode of the vacation
loan is on instalment. Thus you will have to pay the debt in monthly
instalment.

Another great feature of going with these personal loans in
Ireland is bad credit funding
possibility. This means that even if your credit score is not up to the mark,
you might still be yet to get the approval. However, the lending criteria might
differ, and you could charge with a higher interest rate.

Why not use a
credit card to fund the trip?

For a moment, you might come across a doubt
why not to use a credit card rather than taking a loan. Well, you would manage
to get the fund quickly without any inconvenience. But, there is more of the story
than it looks from the surface.

Here, is the brief comparison of the
vacation loan and credit card that will clear your doubt.

Vacation loan

Credit card

Principal
amount

£5,000

£5,000

Rate of interest

6%

17%

Loan term

36 months

36
months

Monthly payment

£165

£222

Overall Interest

£955

£3000

So you see, using the credit card might
seem more convenient but is not at all an excellent option to take. Opting for
a personal loan for travel purpose is more feasible here as it comes with lower
interest rate and you don’t have to pay hefty interest in the end.

Different
travel expenses you can cover with a vacation loan

With the help of a vacation loan, you will
able to cover all the major travel expenses that you might face during the trip,
such as:

Plane fares

Booking hotels

Transportation expenses (cabs,
buses or trains)

Cost of meals

Sightseeing expenses

The fund that you will get from the loan
will probably be enough to pay anything that you need to make your travel
experience memorable. However, make sure that you have contacted the right
lender in the market can probably offer you attractive deals.

Tips to make
the most of your vacation loan

Getting the fund from an external source
will undoubtedly provide significant relief, but you need to use it properly to
make the most of this loan. Here are some useful tips that can help you use the
loan effectively:

Have
a budget: even if you have
managed to get approval for the loan, you must create a budget to ensure that
you don’t end up borrowing more amount than exactly required. A budget will
guide you thoroughly while you are on the trip.

Check
the market: Before taking the offer of the first
lender you met, check the market thoroughly and compare the loans to find out
where you can get the best deals.

Go
online: When you are in
such a rush of acquiring funds, the best option is to approach an online lender.
All you do is submit the online form along with your necessary details and wait
for the approval. Once approved, you could get the amount within the same day
or even in a few hours.

So, this was everything that you need to
know about vacation loan and what you need to do to reap the maximum benefit of
this financial product. The more you will research; the better will be the
chances of getting attractive deals.